POTATO PROTECTION

Evening Post, Volume CXII, Issue 29, 3 August 1926, Page 9

POTATO PROTECTION

« AUSTRALIAN PLEA AGAINST NEW ZEALAND IMPORT WHAT ABOUT "RECIPEOCITY?" The cabled news from Australia that the Australian potato growers are asking tho Commonwealth Tariff Board for further protection against imported potatoes is a matter of concern to New Zealand potato growers. ...In some seasons they have an exportable surplus, which—as is happening this y ea v—j s marketed in Australia. For weeks past telegrams from tho South Island have recorded the, ebb and flow of the Australian demand, tho South Island shipjnents of potatoes to Australian and North Island ports, and the effect of such shipments and demand upon the market prices of potatoes. There is no doubt that tho application to the Commonwealth Tariff Board is aimed at the importation of New Zealand potatoes. The Australian primary producer is very keen after protection, especially protection by means of duty on import or bounty on export. For instance, the Paterson Plan provides for the Australian buter producer a bounty on exported butter, which bounty is paid for the Australian consumer of . butter per medium of a levy on all butter. The Commonwealth Government rules through a party composed of Nationalists and the Country Party, the support of the latter being necessary in order to enable the former to keep out Labour. .Consequently, the primary producer stands in a very strong political position in Australia; and any pressure by' the potato growers, or any other section of primary producers, for protection, must be taken seriously. Any such movement nowadays is generally felt along one or two lines — (1) allegation of disease against the imported article, with request for embargo; (2) straightout Customs protection. Consistent with this 5s the stir caused in Australia two or three weeks ago over the alleged infection of New Zealand potatoes with powdery scab. The second phase of the movement is indicated by the application to the Commonwealth Tariff Board. Sudden embargoes and duties are necessarily very, disturbing to trade, and tend against that stabilisation of prices which is supposed to be the object of the Empire's general economic policy, and of the gold standard in particular. Consistent with that object is tho British Government's recent attempt to" stabilise preferential duties for ten years. The frequent manipulation of duties by a Tariff Board would of course operate in the opposite direction. Action by the Commonwealth Tariff Board against New Zealand produce might force open the whole question of Australian-New Zealand Customs relations. Not long ago it was stated that the two Governments were considering the reciprocal position. A retaliation war would be mutually harmful. New Zealand takes a good deal of Australian citrus fruit. If the Australian potato grower achieved his purpose against New Zealand potatoes, the New Zealand lemon.grower would mako that a reason for claiming further protection against Australian lemons. The same sort of double-barrelled question would arise in. other directions too.